After nearly three years of launching the central public sector enterprise (CPSE) exchange traded fund (ETF), the government will on January 17 initiate the second tranche of fund raising to garner up to Rs 6,000 crore.
The issue size of the follow on fund offer, which will open on January 17 and close on January 20, is Rs 4,500 crore with a greenshoe option of Rs 1,500 crore.
A 5 percent discount will be given to anchor investors, for whom the issue will open on January 17, a government official said on the condition of anonymity. Priority will be given to retail and pension funds at the time of allotment, he added.
The government had first launched a CPSE ETF in March 2014 under which retail investors have to invest a minimum of Rs 5,000 to buy units. It had raised Rs 3,000 crore through the ETF then.
CPSE ETF, which functions like a mutual fund scheme, comprises scrips of 10 PSUs – ONGC, Coal India, IOC, Gail India, Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India.
The fund raising will help the government inch towards its Rs 56,500-crore disinvestment target for the current fiscal. It has already raised about Rs 24,000 crore through share sale and buybacks so far this fiscal.
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